Selling digital products is one of the most lucrative ways to generate residual income. With no manufacturing/distribution costs, every sale is pure profit.

1. Residual Income from
Digital Products
Creating and selling digital products is probably one of the most lucrative
ways to generate residual income. The advantage of selling digital
products is there are no manufacturing or distribution costs. Once the
product is made, every sell is pure profit.
Another advantage to selling digital products is that is scalable, meaning
that regardless of whether you sell one product or 1,000,000, no additional
work is involved once you have the infrastructure set up.
EncoreEntrepreneur .NET

2. Residual Income from
Digital Products
Income potential:
The spectrum of income for digital products is all over the map ranging
from tens of dollars a month to tens of thousands and more. Things that
dictate our income depend on the market niche, demand, competition, the
complexity (value) of our product, and our efforts to overcome any barriers
to entry.
One way to exploit our efforts is to repurpose our products to derive
additional sales from different media. For example, we can repurpose an
eBook by making an audio version, a video version, and/or a slide show
presentation using the same content. We’ve already done the heavy lifting
when we initially produced our product. It just makes sense to offer
additional means for it to be purchased and consumed.
EncoreEntrepreneur .NET

3. Residual Income from
Digital Products
Note: These days Kindle books are hot sellers and proven to be lucrative
sources of residual income . However, there are additional steps involved
and things to consider to successfully launch a Kindle book. Get Kindle
Revolutions to learn on the ins and outs of becoming an Amazon Kindle
publisher.
EncoreEntrepreneur .NET

4. Residual Income from
Digital Products
Difficulty:
While writing an eBook or producing other digital media may seem
overwhelming, but in the big scheme of things, it really isn’t. Even if writing
content isn’t your cup of tea, consider outsourcing. You can outsource
everything from content development to the entire process depending on
your level of skill and/or desire. Depending on your content and the scope
of your project, outsourcing can cost from less than $100 to several
thousand but you’ll never know until you do some investigation. Check out
several sources such as odesk.com, elance.com, or freelance.com to kick off
this project.
EncoreEntrepreneur .NET

5. Digital Product
Development
Define Develop/
Analyze Create Format
Scope Write
Audience Outline Product
of Product Product
Launch
Product
EncoreEntrepreneur .NET

6. Digital Product
Development
Define Analyze your audience. Know who
Develop/
Analyze Create
you’re writing for, what are their Format
Scope Write
Audience needs, Outline
wants, problems, fears, or Product
of Product Product
passions.
Launch
Product
EncoreEntrepreneur .NET

7. Digital Product
Development
Define the scope of your product.
Define What isDevelop/and your goals,
the topic
Analyze Create Format
Scope Write covered, what
what hasn’t been
Audience Outline Product
of Product could beProduct
done better…what is the
“Unique Selling Proposition”? What
will be the title?
Launch
Product
EncoreEntrepreneur .NET

8. Digital Product
Development
Define Develop/
Analyze Create Format
Scope Write
Audience Outline Product
of Product Product
Create an Outline for your product.
Launch
Define the major and minor points,
Product
define the different parts and the
order they will be presented.
EncoreEntrepreneur .NET

9. Digital Product
Development
Develop/Write your Product.
Whether your Define
end product is an Develop/
Analyze Create Format
Scope
eBook, an audiobook, or just about Write
Audience other media, you’ll need written
any
Outline Product
of Product Product
content to begin.
Launch
Product
EncoreEntrepreneur .NET

10. Digital Product
Development
Format the Product. This is where
Define prepare your product, in the Develop/
you
Analyze Create Format
Scopemedia of your choosing, for your Write
Audience Outline foot forward
customer. Put your best
Product
of Product Product
here.
Launch
Product
EncoreEntrepreneur .NET

11. Digital Product
Development
Define Develop/
Analyze Create Format
Scope Write
Audience Outline Product
of Product Product
Launch the Product. Prepare the
product for delivery to your Launch
customer then, make it available. Product
You’ll also need to do some
marketing to “get it out there” for
your customer to discover.
EncoreEntrepreneur .NET

12. Passive Income Process
for Digital Products
Shopping Cart/
Your Product Product
Payment
Website Sales Page Delivery
Processor
Your Account
(PayPal, Google Checkout, etc)
EncoreEntrepreneur .NET

13. Passive Income Process
for Digital Products
We’ll need someplace to “meet” our
potential customers.
Shopping Cart/
Your Product Product
Payment
Website Sales Page Usually this is a dedicated website Delivery
(recommended) Processor
but could also use
blogger.com, wordpress.com, etc.
Your Account
(PayPal, Google Checkout, etc)
EncoreEntrepreneur .NET

14. Passive Income Process
for Digital Products
The sales page will provide our
Shopping Cart/ information about our
customers
Your Product Product
Payment enticing them to make a
product,
Website Sales Page Delivery
Processor with a call to action.
purchase
Your Account
(PayPal, Google Checkout, etc)
EncoreEntrepreneur .NET

15. Passive Income Process
for Digital Products
We’ll need a shopping cart/ payment
processor to take the order. I suggest Shopping Cart/
e-junkie.com. They offer a Product
Your
Payment
Product
Website Sales Page
completely automated way to deliver Delivery
Processor
our product while also getting us
paid.
• We put their code on our sales Your Account
page to make the purchase (PayPal, Google Checkout,
• They deliver the product etc)
• They pay us (via PayPal or Google
Checkout among others)
EncoreEntrepreneur .NET

16. Residual Income from
Digital Products
It’s hard to get more passive than that after you get the product developed.
Visit encoreentrepreneur.net to get more ideas on building a passive retirement income empire.
EncoreEntrepreneur .NET

17. Residual Income from
Digital Products
Attribution: A good number of the concepts presented here are derived from Pat
Flynn’s eBook, “eBooks The Smart Way.” You can get a free copy of Pat’s eBook on
his site, “Smart Passive Income” by signing up for his newsletter. You’ll find more
detail than I presented here and while it’s targeted for eBooks, with some
imagination, many of the concepts can be applied to digital products in general.
A word about Pat. Pat is a young man with a truly inspirational story and a model
for those seeking passive income to supplement their retirement income. His
generosity for freely sharing information is unparalleled. Visit his site at this link.
EncoreEntrepreneur .NET